We can help you learn how to differentiate between condos and townhomes — and explain why it matters. 

Have you ever been caught thinking a property was a townhome only to discover it’s actually a condominium — and that it had an impact on the buyer’s loan terms?

If you have, you are not alone. Determining the legal status of an attached home can be confusing, and can’t be done by sight alone. Many townhome-style condominiums exist in the Chicagoland area, and knowing what the legal classification is can be critical to both marketing the property as well as buyer’s financing options and process.  

Here are a few tips to help you determine which one you’re working with:

• Look at the PIN (Cook County only). A townhome will have four zeros in the last four digits on the PIN, whereas a condo will not.

• Look at the legal description. The legal description will include the Unit number, a Building number (sometimes) and the subdivision name with the volume and page that it was recorded under in county records as well as the Condo Declaration Recording Number.

• Don’t rely on the structure of the building. Condominiums are not just vertical or stacked housing — they can also be row or townhome-style structures.

• Confirm with the association or management company. They should be aware of the legal classification of the property.

Why does it matter?

Financing a condominium has substantially more rules and requirements than a townhome, so knowing this upfront allows for you to set proper expectations and makes for an overall more positive experience for your clients.

At Key Mortgage, almost 25% of all of our financing is for condominiums, so we are extremely experienced in all that it takes to successfully navigate this process. 

Want more information on this topic? Reply to this email and we will get you connected with one of loan officers today.